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Government shares in Dome deal rewards

13 April 2018

MULTINATIONAL VENUE operator AEG has earned £300 million in dividends since redeveloping the site of the former Millennium Dome in London’s Greenwich, and opening The O2 (cap. 21,000) a decade ago.

The venue posted revenue of £96.7m for 2017, with profits rising 13.3 per cent to £33.5m. The total number of events also increased by 16 from the previous year, to 208, while attendance was up by 500,000 to 2.7m.

Among the events staged included shows by Little Mix, Shawn Mendes and Iron Maiden.

AEG took over the Government-owned site in 2002 and opened The O2 complex, comprising the arena, IndigO2 (2,350), a cinema, restaurants and bars, five years later.

As part of the deal AEG got the site free in return for agreeing to pay 15 per cent of the development’s net profits to the Government for 25 years. Last year this amounted to £5m, taking the overall figure paid back to taxpayers so far to £24.5m.

The Millennium Dome cost £789m overall, the equivalent of about £1.25 billion today.

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